Home » News » Business News » Warner Music Group Revenue Tops $1.2 bn in Q1 2018-19

Warner Music Group Revenue Tops $1.2 bn in Q1 2018-19

Image

 

Warner Music Group (WMG) has released the financial results for its first fiscal quarter ended December 31st, 2018.

According to Warner, the music company’s revenue surpassed $1.2 bn for the first quarter which is up by 15% from the company’s first quarter in 2018. Warner Music Group enjoyed the increase in revenue from $1.045 bn in the corresponding period in the prior year, while also seeing net income rise to $86 mn from $5 mn.

Music Publishing revenue rose $22 mn, or 15.4 %, but was partially offset by a decline in the mechanicals reflecting the continuing trend of music consumers away from physical product to streaming.

“Our first-quarter results are evidence that our long-term strategy is paying off,” Warner Music Group’s executive VP and CFO Eric Levin said in a statement. “Our Recorded Music business alone exceeded $1 billion in revenue, and we also had strong OIBDA and cash flow.”

Digital revenue including streaming and downloads grew 18 % to $627 mn. Operating income experienced strong growth of 63 % to $147 mn. Operating Income Before Depreciation and Amortization rose 38.7 % to $215 mn. This included a net $8 mn benefit from M&A – Mergers and Acquisitions and an $18 mn benefit from the adoption of ASC 606, a new accounting standard.

WMG also confirmed recorded music revenue saw a net gain of $76 mn from its acquisition of EMP Merchandising last September.

Operating income jumped to $22 mn, up from $1 mn in operating loss. Operating margin also increased by 13.3 %, up from -0.7 %.

Music publishing OIBDA rose to $39 mn.  OIBDA margin improved 23.6 %, up from 11.9 %. These two were positively affected by the acceptance of ASC 606, resulting in a $24 mn gain. However, music publishing OIBDA declined due to a revenue mix from the same accounting standard.

Warner/Chappell’s revenue rose 15.4 % to $22 mn. This number was lifted by a $26 mn gain from the adoption of ASC 606.  Mechanical revenue fell $3 mn year-over-year.

 

Musicplus on WhatsApp

1143total visits

Music Plus Team

Author: Music Plus Team

Leave a Reply

Your email address will not be published. Required fields are marked *

Top

Get Music Plus’s top stories, interviews
and gig updates delivered to your inbox.

We won’t spam you. Promise!